NIFTY ACHIEVES 10420 TARGET; TRAIL STOP-LOSS OF 10285

NIFTY ACHIEVES 10420 TARGET; TRAIL STOP-LOSS OF 10285

WORLD MARKETS

US indices soared 1.7%-2.1% on easing trade war fears with as China's president said he would work to "open" the country's economy.

The policy plans outlined by Xi during a speech included reducing tariffs for autos and improving intellectual property rights protection.

Brent crude surged 3.7% or $2.56 to $71.21 a barrel, its highest level since 2014 while WTI crude rose 3.3% o $2.09 to $65.51 a barrel.

Main European markets gained 0.8%-1.1%.

AT HOME

Benchmark indices gained about a fourth of a percent, extending the winning streak to fourth straight day. Sensex gained 92 points to settle at 33880 while Nifty added 23 points to finish at 10402. BSE mid-cap index rose 0.2% while the small-cap index ended flat. BSE Metal and Realty indices gained 2% and 1.2% respectively, becoming top gainers among sectoral indices while Auto and Consumer Discretionary Goods & Services indices were the top losers, down 0.6% and 0.4% respectively.

FIIs net sold stocks worth Rs 685 cr but net bought index futures and stock futures worth Rs 1120 cr and 494 cr respectively. DIIs were net buyers to the tune of Rs 654 cr.

Rupee appreciated 4 paise to end at 64.99/$. 10-year bond yield surged 15 bps to 7.379%.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are up 0.5% and 0.2% respectively. SGX Nifty is suggesting a marginally higher start for our market.

Just to recall, we had given upside target of 10420, which is the 38.2% retracement level of the entire 11171-9951 fall, after 34-DMA resistance of 10310 was taken out. Nifty yesterday touched a high of 10425 before closing at 10402, achieving this target and vindicating our view.

A decisive crossover of 10420 is required for a fresh upmove. 10480, the top made in mid-March, would be the next target, if that happens.

Traders are advised to book some profit in long positions and trail stop-loss in remaining to 10285, which is now the immediate support on the hourly chart.